NASDAQ: HBIO Q4'20 Earnings Presentation Jim Green, Chairman, President & CEO Mike Rossi, CFO March 10, 2021 Forward-Looking Statements and Non-GAAP Financial Information Forward-Looking Statements Information in this presentation or in oral statements of the management of the Company may include forward-looking statements within the meaning of the federal securities laws, including the Private Securities Litigation Reform Act of 1995. You can identify these statements by our use of such words as "will," "g ...

NASDAQ: HBIO Q3'20 Earnings Presentation Jim Green, Chairman, President & CEO Mike Rossi, CFO November 5, 2020 Forward-Looking Statements and Non-GAAP Financial Information Forward-Looking Statements Information in this presentation or in oral statements of the management of the Company may include forward-looking statements within the meaning of the federal securities laws, including the Private Securities Litigation Reform Act of 1995. You can identify these statements by our use of such words as "will," ...

Harvard Bioscience, Inc. (NASDAQ:HBIO) Q3 2020 Earnings Conference Call November 5, 2020 8:00 AM ET Company Participants David Sirois - Director, Corporate Accounting & SEC Reporting Jim Green - Chairman of the Board, President and Chief Executive Officer Mike Rossi - Chief Financial Officer Conference Call Participants Lisa Springer - Singular Research Bruce Jackson - The Benchmark Company Operator Thank you for standing by, and welcome to the Third Quarter 2020, Harvard Bioscience Inc, Earnings Conference ...

NASDAQ: HBIO Q2'20 Earnings Presentation Jim Green, Chairman, President & CEO Mike Rossi, CFO August 5, 2020 Forward-Looking Statements and Non-GAAP Financial Information Forward-Looking Statements This information in this presentation or in oral statements of the management of the Company may include forward-looking statements within the meaning of the federal securities laws, including the Private Securities Litigation Reform Act of 1995. You can identify these statements by our use of such words as "will ...

Harvard Bioscience, Inc. (NASDAQ:HBIO) Q2 2020 Earnings Conference Call August 5, 2020 8:00 AM ET Company Participants David Sirois – Director of Corporate Accounting and SEC Reporting Jim Green – Chairman of the Board, President and Chief Executive Officer Mike Rossi – Chief Financial Officer Conference Call Participants Bruce Jackson – The Benchmark Company Lisa Springer – Singular Research Operator Good day, ladies and gentlemen, and thank you for standing by. Welcome to the Harvard Biosciences Incorpora ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q ☒ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended March 31, 2020 ☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the ...

Financial Data and Key Metrics Changes - Q1 2020 revenue was $23.8 million, down $4.4 million or 15.7% from Q1 2019 [12] - GAAP gross margin was 54.6%, a decrease of 2.7% year-over-year [12] - Non-GAAP adjusted gross margin was also 54.6%, down 2.9% [12] - GAAP operating income was negative $3.3 million, while adjusted operating income was positive $500,000, resulting in an adjusted operating margin of 2% [12] - GAAP earnings per share was negative $0.12, and adjusted earnings per share was negative $0.01 [12] - Cash flow from operations improved to $2.9 million from $2 million in the prior year [25] Business Line Data and Key Metrics Changes - Revenue from cellular and molecular products, primarily for academic research labs, was down 15.7% due to lab shutdowns [14] - Preclinical revenue also declined primarily due to COVID-19 impacts, but CRO revenue saw year-over-year growth driven by North America and China [15] - Pharma revenue remained steady compared to last year, with excitement around new inhalation products [15] Market Data and Key Metrics Changes - The impact of COVID-19 was felt equally across geographies, with Asia affected through February, followed by significant impacts in Europe and North America in March [20] - Academic labs experienced significant revenue declines due to shutdowns, while CROs and pharma showed resilience and growth [20][36] Company Strategy and Development Direction - The company is focusing on strict cash and cost control to maintain strong cash flow and meet debt obligations [10] - A restructuring plan was initiated, including a global reduction in force of approximately 10%, expected to yield annualized savings of over $4 million [16] - The company is investing in high-potential areas such as CRISPR-related products and preclinical testing technologies [53] Management's Comments on Operating Environment and Future Outlook - Management expects further revenue decline in Q2, projecting a decrease of 20% to 30% year-over-year, with recovery anticipated in the second half as academic labs reopen [27] - The company has taken immediate actions to offset Q2 margin impacts and is committed to maintaining cash flows and meeting debt obligations [27] - Management expressed confidence in the recovery of the CRO and pharma segments, with indications of continued demand for products [34] Other Important Information - The company returned a $6 million PPP loan, indicating confidence in its liquidity and operational management [26] - New inhalation products are gaining interest, particularly from CROs and pharmaceuticals, with expectations for continued growth [52] Q&A Session Summary Question: Can you talk to the businesses again as you were moving into Q2? - Management noted that CROs started growing in Q1 despite COVID-19, with strong demand continuing from these segments [32] Question: Do you think academia may be bottoming now, but not necessarily recover? - Management believes the order intake from academia has dropped significantly but expects sequential improvement as labs reopen [39] Question: Can you talk about debt payments due this current quarter? - Management confirmed ongoing interest payments will be met, and they are focused on avoiding covenant issues [43] Question: Could you give us more color around the insulation-type products? - Management explained that new inhalation products are designed to measure aerosol delivery to the lungs, with growing interest from various customer segments [50] Question: Is the low-margin portfolio rationalization process complete? - Management indicated that the rationalization process is nearly complete, focusing on successful product lines moving forward [53] Question: How should we think about gross margins in the second quarter? - Management expects some downward pressure on gross margins due to volume decline but anticipates operating margins to return to normal levels [58]

NASDAQ: HBIO Q1'20 Earnings Presentation Jim Green, Chairman, President & CEO Mike Rossi, CFO May 5, 2020 Forward-Looking Statements and Non-GAAP Financial Information Forward-Looking Statements This information in this presentation or in oral statements of the management of the Company may include forward-looking statements within the meaning of the federal securities laws, including the Private Securities Litigation Reform Act of 1995. You can identify these statements by our use of such words as "will," ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q ☒ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended September 30, 2019 ☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission file number 001-33957 HARVARD BIOSCIENCE, INC. (Exact Name of Registrant as Specified in Its Charter) Delaware 04-3306140 (State or Other Jurisdiction of In ...

[PART I - FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Presents unaudited consolidated financial statements for Q2 and H1 2019, covering balance sheets, operations, equity, and cash flows, with detailed notes [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets%20as%20of%20June%2030%2C%202019%20and%20December%2031%2C%202018%20(unaudited)) Consolidated Balance Sheet Highlights (in thousands) | Metric | June 30, 2019 | December 31, 2018 | | :--- | :--- | :--- | | Total Assets | $166,238 | $168,613 | | Total Liabilities | $85,908 | $85,889 | | Total Stockholders' Equity | $80,330 | $82,724 | | Cash and cash equivalents | $4,934 | $8,173 | | Total current assets | $52,493 | $57,832 | | Total current liabilities | $20,861 | $25,489 | | Long-term debt, less current installments | $52,414 | $54,813 | [Consolidated Statements of Operations and Comprehensive Income (Loss)](index=5&type=section&id=Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income%20(Loss)%20for%20the%20Three%20and%20Six%20Months%20Ended%20June%2030%2C%202019%20and%202018%20(unaudited)) Consolidated Statements of Operations Highlights (in thousands, except per share data) | Metric | Three Months Ended June 30, 2019 | Three Months Ended June 30, 2018 | Six Months Ended June 30, 2019 | Six Months Ended June 30, 2018 | | :--- | :--- | :--- | :--- | :--- | | Revenues | $29,584 | $31,522 | $57,786 | $58,281 | | Gross profit | $15,955 | $15,355 | $32,109 | $28,624 | | Operating income (loss) | $228 | $(382) | $108 | $(1,648) | | Net loss | $(247) | $(1,464) | $(2,617) | $(5,528) | | Basic loss per common share | $(0.01) | $(0.04) | $(0.07) | $(0.15) | | Diluted loss per common share | $(0.01) | $(0.04) | $(0.07) | $(0.15) | [Consolidated Statement of Stockholders' Equity (Three Months)](index=7&type=section&id=Consolidated%20Statement%20of%20Stockholders'%20Equity%20for%20the%20Three%20Months%20Ended%20June%2030%2C%202019%20and%202018%20(unaudited)) Stockholders' Equity Changes (Three Months Ended June 30, 2019 vs. 2018, in thousands) | Metric | June 30, 2019 | June 30, 2018 | | :--- | :--- | :--- | | Total Stockholders' Equity (End of Period) | $80,330 | $77,012 | | Net loss | $(247) | $(1,464) | | Stock compensation expense | $615 | $734 | | Other comprehensive loss | $(474) | $(2,713) | [Consolidated Statement of Stockholders' Equity (Six Months)](index=8&type=section&id=Consolidated%20Statement%20of%20Stockholders'%20Equity%20for%20the%20Six%20Months%20Ended%20June%2030%2C%202019%20and%202018%20(unaudited)) Stockholders' Equity Changes (Six Months Ended June 30, 2019 vs. 2018, in thousands) | Metric | June 30, 2019 | June 30, 2018 | | :--- | :--- | :--- | | Total Stockholders' Equity (End of Period) | $80,330 | $77,012 | | Net loss | $(2,617) | $(5,528) | | Stock compensation expense | $1,206 | $1,746 | | Other comprehensive loss | $(649) | $(1,486) | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows%20for%20the%20Six%20Months%20Ended%20June%2030%2C%202019%20and%202018%20(unaudited)) Consolidated Statements of Cash Flows Highlights (Six Months Ended June 30, in thousands) | Activity | 2019 | 2018 | | :--- | :--- | :--- | | Net cash provided by operating activities | $2,667 | $1,725 | | Net cash provided by (used in) investing activities | $588 | $(52,912) | | Net cash (used in) provided by financing activities | $(6,537) | $50,705 | | Decrease in cash and cash equivalents | $(3,239) | $(109) | | Cash and cash equivalents at end of period | $4,934 | $5,624 | [Notes to Unaudited Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) [Note 1. Basis of Presentation and Summary of Significant Accounting Policies](index=10&type=section&id=1.%20Basis%20of%20Presentation%20and%20Summary%20of%20Significant%20Accounting%20Policies) - The unaudited consolidated financial statements adhere to SEC rules and U.S. GAAP, with all necessary adjustments for fair presentation[28](index=28&type=chunk)[29](index=29&type=chunk) - An immaterial **$4.0 million** misclassification in current vs. long-term debt was corrected for December 31, 2018, without impacting total reported debt[30](index=30&type=chunk) - Denville Scientific, Inc.'s operating results, sold in January 2018, are presented as discontinued operations due to its strategic impact[31](index=31&type=chunk) - The Company adopted ASC 842 Leases on January 1, 2019, recognizing operating lease ROU assets and liabilities for leases exceeding 12 months[33](index=33&type=chunk)[34](index=34&type=chunk) [Note 2. Recently Issued Accounting Pronouncements](index=11&type=section&id=2.%20Recently%20Issued%20Accounting%20Pronouncements) - The Company is assessing ASU No. 2016-13 (Credit Losses), effective after December 15, 2019, which will significantly impact allowance for doubtful accounts[37](index=37&type=chunk) - ASU No. 2018-14 (Defined Benefit Plans) and ASU No. 2019-04 (Derivatives and Hedging) are under assessment, with effective dates after December 15, 2020, and January 1, 2020, respectively[38](index=38&type=chunk)[39](index=39&type=chunk) - ASU No. 2017-12 (Derivatives and Hedging) was adopted on January 1, 2019, with no material financial impact[40](index=40&type=chunk) - ASC 842 (Leases) adoption on January 1, 2019, led to recognizing **$11.7 million** in operating lease liabilities and **$9.4 million** in right-of-use assets[42](index=42&type=chunk) [Note 3. Accumulated Other Comprehensive Loss](index=13&type=section&id=3.%20Accumulated%20Other%20Comprehensive%20Loss) Changes in Accumulated Other Comprehensive Loss (in thousands) | Component | Balance at Dec 31, 2018 | Other comprehensive income (loss) before reclassifications | Amounts reclassified from AOCI | Balance at June 30, 2019 | | :--- | :--- | :--- | :--- | :--- | | Foreign currency translation adjustments | $(12,630) | $(191) | - | $(12,821) | | Derivatives qualifying as hedges | $(170) | $(494) | $36 | $(628) | | Defined benefit pension plans | $(732) | - | - | $(732) | | **Total** | **$(13,532)** | **$(685)** | **$36** | **$(14,181)** | [Note 4. Acquisition](index=13&type=section&id=4.%20Acquisition) - On January 31, 2018, the Company acquired DSI for approximately **$71.1 million**, expanding into biopharmaceutical and contract research organization markets[44](index=44&type=chunk)[45](index=45&type=chunk) DSI Acquisition Purchase Price Allocation (in thousands) | Asset/Liability | Amount | | :--- | :--- | | Tangible assets | $34,010 | | Liabilities assumed | $(11,949) | | Goodwill | $21,865 | | Amortizable intangible assets | $40,318 | | Deferred tax liabilities, net | $(13,120) | | **Total Acquisition Purchase Price** | **$71,124** | - DSI contributed approximately **$18.2 million** in revenues and a net loss of **$1.7 million** from acquisition to June 30, 2018, including a **$3.7 million** inventory fair value step-up charge[47](index=47&type=chunk) [Note 5. Discontinued Operations](index=15&type=section&id=5.%20Discontinued%20Operations) - On January 22, 2018, Denville Scientific, Inc. was sold for approximately **$20.0 million**, including a **$3.0 million** earn-out provision, of which **$2.0 million** for 2018 was not earned[50](index=50&type=chunk) Income from Discontinued Operations (in thousands) | Metric | Three Months Ended June 30, 2018 | Six Months Ended June 30, 2018 | | :--- | :--- | :--- | | Revenues | $- | $893 | | Income from discontinued operations before income taxes | $24 | $937 | | Income tax benefit | $(10) | $(883) | | **Income from discontinued operations** | **$34** | **$1,820** | - During Q2 2019, the Company received a **$1.0 million** escrow release from the Denville Transaction, recorded in investing cash flows[52](index=52&type=chunk) [Note 6. Goodwill and Other Intangible Assets](index=16&type=section&id=6.%20Goodwill%20and%20Other%20Intangible%20Assets) Intangible Assets (in thousands) | Asset Type | June 30, 2019 (Net) | December 31, 2018 (Net) | | :--- | :--- | :--- | | Amortizable intangible assets | $40,670 | $44,532 | | Goodwill | $57,239 | $57,304 | | Other indefinite-lived intangible assets | $1,230 | $1,232 | | **Total intangible assets, gross** | **$130,743** | **$131,887** | - Goodwill decreased by **$65 thousand** due to currency translation effects for the six months ended June 30, 2019[55](index=55&type=chunk) - Amortization expense was **$1.4 million** for Q2 2019 and **$2.9 million** for H1 2019, with a **$0.9 million** impairment charge for in-process R&D intangible assets in Q2 2019[55](index=55&type=chunk)[56](index=56&type=chunk) [Note 7. Inventories](index=16&type=section&id=7.%20Inventories) Inventories (in thousands) | Category | June 30, 2019 | December 31, 2018 | | :--- | :--- | :--- | | Finished goods | $6,729 | $6,936 | | Work in process | $4,101 | $3,667 | | Raw materials | $14,458 | $14,484 | | **Total** | **$25,288** | **$25,087** | [Note 8. Property, Plant and Equipment](index=17&type=section&id=8.%20Property%2C%20Plant%20and%20Equipment) Property, Plant and Equipment, Net (in thousands) | Category | June 30, 2019 | December 31, 2018 | | :--- | :--- | :--- | | Land, buildings and leasehold improvements | $2,527 | $2,468 | | Machinery and equipment | $9,914 | $9,678 | | Computer equipment and software | $9,814 | $9,685 | | Furniture and fixtures | $1,406 | $1,390 | | Automobiles | $114 | $115 | | Less: accumulated depreciation | $(18,416) | $(17,438) | | **Property, plant and equipment, net** | **$5,359** | **$5,898** | [Note 9. Related Party Transactions](index=17&type=section&id=9.%20Related%20Party%20Transactions) - The Company made rent payments of approximately **$89 thousand** and **$178 thousand** to former owners of acquired companies for Q2 and H1 2019, respectively[59](index=59&type=chunk) [Note 10. Warranties](index=17&type=section&id=10.%20Warranties) Product Warranty Accrual Rollforward (in thousands) | Period | Beginning Balance | (Payments)/Credits | Additions | Ending Balance | | :--- | :--- | :--- | :--- | :--- | | Year ended Dec 31, 2018 | $246 | $(37) | $182 | $391 | | Six months ended June 30, 2019 | $391 | $(79) | $6 | $318 | [Note 11. Employee Benefit Plans](index=17&type=section&id=11.%20Employee%20Benefit%20Plans) Defined Benefit Pension Expense (in thousands) | Component | Three Months Ended June 30, 2019 | Three Months Ended June 30, 2018 | Six Months Ended June 30, 2019 | Six Months Ended June 30, 2018 | | :--- | :--- | :--- | :--- | :--- | | Interest cost | $123 | $118 | $255 | $250 | | Expected return on plan assets | $(170) | $(184) | $(352) | $(388) | | Net amortization loss | $71 | $52 | $147 | $110 | | **Net periodic benefit cost (income)** | **$24** | **$(14)** | **$50** | **$(28)** | - The Company contributed **$0.4 million** to its defined benefit pension plans for H1 2019 and 2018, with an expected **$0.3 million** contribution for the rest of 2019[62](index=62&type=chunk) - An underfunded pension liability of approximately **$0.9 million** was reported as of June 30, 2019, and December 31, 2018[63](index=63&type=chunk) [Note 12. Leases](index=18&type=section&id=12.%20Leases) - Upon adopting ASC 842 on January 1, 2019, the Company recognized **$9.4 million** in right-of-use assets and **$11.7 million** in operating lease liabilities[64](index=64&type=chunk) Lease Expense and Liabilities (in thousands) | Metric | Three Months Ended June 30, 2019 | Six Months Ended June 30, 2019 | | :--- | :--- | :--- | | Total lease cost | $463 | $960 | | Operating lease right-of-use assets (June 30, 2019) | N/A | $8,846 | | Total operating lease liabilities (June 30, 2019) | N/A | $11,009 | | Weighted average remaining lease term (June 30, 2019) | N/A | 8.5 years | | Weighted average discount rate (June 30, 2019) | N/A | 9.2% | Future Minimum Lease Payments for Operating Leases (in thousands) | Year | Amount | | :--- | :--- | | 2020 | $2,295 | | 2021 | $2,108 | | 2022 | $1,852 | | 2023 | $1,804 | | 2024 | $1,798 | | Thereafter | $6,543 | | **Total lease payments** | **$16,400** | | Less interest | $(5,391) | | **Total operating lease liabilities** | **$11,009** | [Note 13. Capital Stock](index=19&type=section&id=13.%20Capital%20Stock) - As of June 30, 2019, the Company had **37.9 million** shares of common stock issued and outstanding, with **80.0 million** shares authorized[67](index=67&type=chunk) - Under the ESPP, **93,785** shares were issued in H1 2019, enabling employees to purchase shares at **85%** of the lower fair market value at period start or end[69](index=69&type=chunk) - Stock-based compensation expense was **$0.6 million** for Q2 2019 and **$1.2 million** for H1 2019, a decrease from prior periods[124](index=124&type=chunk)[76](index=76&type=chunk) Weighted Average Common Shares for EPS Calculation | Period | Basic | Diluted | | :--- | :--- | :--- | | Three Months Ended June 30, 2019 | 37,735,717 | 37,735,717 | | Three Months Ended June 30, 2018 | 36,082,258 | 36,082,258 | | Six Months Ended June 30, 2019 | 37,682,539 | 37,682,539 | | Six Months Ended June 30, 2018 | 35,774,334 | 35,774,334 | [Note 14. Long Term Debt](index=22&type=section&id=14.%20Long%20Term%20Debt) - On January 31, 2018, a new Financing Agreement provided a **$64.0 million** term loan and a **$25.0 million** revolving line of credit for the DSI acquisition and general corporate needs[79](index=79&type=chunk)[80](index=80&type=chunk) - Term loans amortize quarterly with mandatory 'excess cash flow sweep' prepayments; the Company made a **$4.0 million** excess cash flow payment and a **$1.0 million** Denville escrow payment in Q1/Q2 2019[81](index=81&type=chunk)[168](index=168&type=chunk) - As of June 30, 2019, total borrowings were **$54.8 million** (net), with **$9.5 million** available capacity and a **8.85%** weighted effective interest rate on the term loan[84](index=84&type=chunk)[85](index=85&type=chunk)[172](index=172&type=chunk)[173](index=173&type=chunk) Long-Term Debt (in thousands) | Metric | June 30, 2019 | December 31, 2018 | | :--- | :--- | :--- | | Term loan | $56,197 | $62,400 | | Total unamortized deferred financing costs | $(1,376) | $(1,605) | | **Total debt** | **$54,821** | **$60,795** | | Less: current installments | $(2,800) | $(6,383) | | Current unamortized deferred financing costs | $393 | $401 | | **Long-term debt** | **$52,414** | **$54,813** | [Note 15. Derivatives](index=23&type=section&id=15.%20Derivatives) - The Company uses LIBOR-based interest rate swap agreements to manage variable-rate debt exposure, converting variable cash flows to fixed cash flows[87](index=87&type=chunk)[91](index=91&type=chunk) - An interest rate swap with a **$36.0 million** notional amount and January 1, 2023, termination date hedges a portion of the term loan, fixing the LIBOR rate at **2.72%**[92](index=92&type=chunk) Derivative Instruments Notional Amount and Fair Value (in thousands) | Instrument | June 30, 2019 Notional Amount | June 30, 2019 Fair Value | Dec 31, 2018 Notional Amount | Dec 31, 2018 Fair Value | | :--- | :--- | :--- | :--- | :--- | | Interest rate swaps | $31,591 | $(628) | $34,090 | $(170) | Effect of Derivatives on Comprehensive Loss (in thousands) | Period | Gain (Loss) recognized in OCI (effective portion) | | :--- | :--- | | Three Months Ended June 30, 2019 | $(298) | | Three Months Ended June 30, 2018 | $155 | | Six Months Ended June 30, 2019 | $(494) | | Six Months Ended June 30, 2018 | $(99) | [Note 16. Fair Value Measurements](index=25&type=section&id=16.%20Fair%20Value%20Measurements) - Fair value measurements are categorized into a three-level hierarchy: Level 1 (quoted prices), Level 2 (observable inputs), and Level 3 (unobservable inputs)[96](index=96&type=chunk)[97](index=97&type=chunk) Fair Value Hierarchy for Interest Rate Swap Agreements (in thousands) | Date | Level 1 | Level 2 | Level 3 | Total | | :--- | :--- | :--- | :--- | :--- | | June 30, 2019 | $- | $(628) | $- | $(628) | | December 31, 2018 | $- | $(170) | $- | $(170) | - The Company's interest rate swap agreements are valued using the market approach, based on LIBOR yield curves, and are classified as Level 2[97](index=97&type=chunk) [Note 17. Revenues](index=26&type=section&id=17.%20Revenues) Revenues by Geographic Area and Product Type (Three Months Ended June 30, in thousands) | Category | United States | United Kingdom | Germany | Rest of the world | Total | | :--- | :--- | :--- | :--- | :--- | :--- | | **2019** | | | | | | | Instruments, equipment, software and accessories | $20,920 | $2,399 | $3,271 | $1,753 | $28,343 | | Service, maintenance and warranty contracts | $910 | $236 | $79 | $16 | $1,241 | | **Total revenues** | **$21,830** | **$2,635** | **$3,350** | **$1,769** | **$29,584** | | **2018** | | | | | | | Instruments, equipment, software and accessories | $20,478 | $4,058 | $3,316 | $2,156 | $30,008 | | Service, maintenance and warranty contracts | $1,204 | $168 | $129 | $13 | $1,514 | | **Total revenues** | **$21,682** | **$4,226** | **$3,445** | **$2,169** | **$31,522** | Revenues by Geographic Area and Product Type (Six Months Ended June 30, in thousands) | Category | United States | United Kingdom | Germany | Rest of the world | Total | | :--- | :--- | :--- | :--- | :--- | :--- | | **2019** | | | | | | | Instruments, equipment and accessories | $39,591 | $5,528 | $6,184 | $3,798 | $55,101 | | Service, maintenance and warranty contracts | $2,053 | $426 | $176 | $30 | $2,685 | | **Total revenues** | **$41,644** | **$5,954** | **$6,360** | **$3,828** | **$57,786** | | **2018** | | | | | | | Instruments, equipment and accessories | $36,695 | $7,587 | $7,006 | $4,400 | $55,688 | | Service, maintenance and warranty contracts | $2,030 | $334 | $198 | $31 | $2,593 | | **Total revenues** | **$38,725** | **$7,921** | **$7,204** | **$4,431** | **$58,281** | - Deferred revenue decreased from **$3.8 million** at December 31, 2018, to **$3.5 million** at June 30, 2019, due to recognition partially offset by new deferrals[99](index=99&type=chunk)[101](index=101&type=chunk) [Note 18. Income Tax](index=28&type=section&id=18.%20Income%20Tax) Income Tax from Continuing Operations (in thousands) | Period | Income Tax Benefit (Expense) | Effective Tax Rate | | :--- | :--- | :--- | | Three Months Ended June 30, 2019 | $885 | 78.2% | | Three Months Ended June 30, 2018 | $369 | 19.8% | | Six Months Ended June 30, 2019 | $309 | 10.6% | | Six Months Ended June 30, 2018 | $(236) | (3.3%) | - Effective tax rate differences from the **21%** U.S. statutory rate are due to income/loss mix, foreign tax rates, GILTI rules, interest expense limitations, and non-deductible acquisition costs[105](index=105&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial condition and results for Q2 and H1 2019, covering revenue, expenses, liquidity, and foreign currency [Forward-Looking Statements](index=29&type=section&id=Forward-Looking%20Statements) - The report includes forward-looking statements subject to known and unknown risks and uncertainties that could materially alter actual results[108](index=108&type=chunk) - Key risks include reduced research budgets, global economic conditions, currency fluctuations, competition, IT issues, acquisition integration, substantial debt, and Brexit impact[108](index=108&type=chunk) [Overview](index=30&type=section&id=Overview) - Harvard Bioscience, Inc. is a global provider of scientific instruments, systems, software, and services for life science research, drug discovery, and testing[110](index=110&type=chunk) - In January 2018, the Company acquired DSI for approximately **$71.1 million**, expanding into biopharmaceutical and contract research organization markets with synergy potential[111](index=111&type=chunk) - In January 2018, Denville Scientific, Inc. was sold for approximately **$20.0 million**, including a **$3.0 million** earn-out provision, of which **$2.0 million** for 2018 was not earned[112](index=112&type=chunk) [Components of Operating Income](index=30&type=section&id=Components%20of%20Operating%20Income) - Revenues are generated from selling scientific products and services through various channels, including direct sales and distributors[114](index=114&type=chunk) - For Q2 2019, direct sales comprised approximately **71%** of revenues (up from **58%** in 2018), while distributor sales were **29%** (down from **42%**)[114](index=114&type=chunk)[117](index=117&type=chunk) - Manufactured products accounted for approximately **83%** of Q2 2019 revenues (down from **88%** in 2018), with distributed products at **17%** (up from **12%**)[118](index=118&type=chunk) - Non-United States operations contributed approximately **26%** of Q2 2019 revenues, a decrease from **31%** in 2018[119](index=119&type=chunk) - Cost of revenues includes material, labor, overhead, obsolescence, packaging, warranty, shipping, and royalties, with manufactured products generally having lower cost percentages[119](index=119&type=chunk) - Stock-based compensation expense was **$0.6 million** for Q2 2019 and **$1.2 million** for H1 2019, a decrease from prior periods[124](index=124&type=chunk) [Selected Results of Operations](index=32&type=section&id=Selected%20Results%20of%20Operations) [Three Months Ended June 30, 2019 vs. 2018](index=32&type=section&id=Three%20Months%20Ended%20June%2030%2C%202019%20compared%20to%20Three%20Months%20Ended%20June%2030%2C%202018) Key Financials (Three Months Ended June 30, in thousands) | Metric | 2019 | 2018 | Dollar Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Revenues | $29,584 | $31,522 | $(1,938) | -6.1% | | Cost of revenues | $13,629 | $16,167 | $(2,538) | -15.7% | | Gross margin percentage | 53.9% | 48.7% | N/A | 10.7% | | Sales and marketing expenses | $5,770 | $6,309 | $(539) | -8.5% | | General and administrative expenses | $4,809 | $5,258 | $(449) | -8.5% | | Research and development expenses | $2,771 | $2,758 | $13 | 0.5% | | Amortization of intangible assets | $1,436 | $1,412 | $24 | 1.7% | | Impairment charges | $941 | $- | $941 | 100.0% | | Other expense, net | $1,360 | $1,485 | $(125) | -8.4% | | Income from discontinued operations | $- | $34 | $(34) | -100.0% | - Revenue decreased by **6.1%** due to lower sales in Europe and with contract resource organizations, partially offset by new DSI product sales, with foreign currency negatively impacting revenues by approximately **$0.5 million**[126](index=126&type=chunk)[127](index=127&type=chunk)[128](index=128&type=chunk) - Gross profit margin increased to **53.9%** from **48.7%**, primarily due to the absence of a **$2.2 million** purchase accounting inventory fair value step-up charge in Q2 2018[130](index=130&type=chunk) - Sales and marketing expenses decreased by **8.5%** due to lower employee and variable sales costs, while general and administrative expenses also decreased by **8.5%** due to lower employee and bad debt expenses[131](index=131&type=chunk)[132](index=132&type=chunk) - A **$0.9 million** impairment charge was recognized for in-process R&D intangible assets in Q2 2019, with no comparable charge in Q2 2018[135](index=135&type=chunk) [Six Months Ended June 30, 2019 vs. 2018](index=35&type=section&id=Six%20Months%20Ended%20June%2030%2C%202019%20compared%20to%20Six%20Months%20Ended%20June%2030%2C%202018) Key Financials (Six Months Ended June 30, in thousands) | Metric | 2019 | 2018 | Dollar Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Revenues | $57,786 | $58,281 | $(495) | -0.8% | | Cost of revenues | $25,677 | $29,657 | $(3,980) | -13.4% | | Gross margin percentage | 55.6% | 49.1% | N/A | 13.1% | | Sales and marketing expenses | $12,076 | $11,955 | $121 | 1.0% | | General and administrative expenses | $10,612 | $10,642 | $(30) | -0.3% | | Research and development expenses | $5,506 | $5,160 | $346 | 6.7% | | Amortization of intangible assets | $2,866 | $2,515 | $351 | 14.0% | | Impairment charges | $941 | $- | $941 | 100.0% | | Other expense, net | $3,034 | $5,464 | $(2,430) | -44.5% | | Income from discontinued operations | $- | $1,820 | $(1,820) | -100.0% | - Revenue decreased by **0.8%** due to lower sales in Europe and with contract resource organizations, partially offset by DSI new product sales and an additional month of DSI revenue, with foreign currency negatively impacting revenues by approximately **$1.3 million**[141](index=141&type=chunk)[142](index=142&type=chunk)[144](index=144&type=chunk) - Gross profit margin increased to **55.6%** from **49.1%**, primarily due to the absence of a **$3.7 million** purchase accounting inventory fair value step-up amortization charge in H1 2018[145](index=145&type=chunk) - R&D expenses increased by **6.7%** and intangible asset amortization by **14.0%**, both primarily due to six months of DSI expenses in 2019 versus five months in 2018[148](index=148&type=chunk)[149](index=149&type=chunk) - Other expense, net, decreased by **44.5%** primarily due to **$2.8 million** in DSI acquisition and Denville divestiture transaction costs in H1 2018, partially offset by higher interest expense in 2019[153](index=153&type=chunk) - Income from discontinued operations was **$1.8 million** in H1 2018, including a **$1.3 million** gain on Denville sale and a **$0.9 million** income tax benefit, with no such income in H1 2019[156](index=156&type=chunk) [Liquidity and Capital Resources](index=38&type=section&id=Liquidity%20and%20Capital%20Resources) - The Company's liquidity is primarily driven by operating activities, bank borrowings, and stock issuance, supporting acquisitions and capital expenditures[157](index=157&type=chunk) Liquidity and Capital Resources (in thousands) | Metric | June 30, 2019 | December 31, 2018 | | :--- | :--- | :--- | | Cash and cash equivalents | $4,934 | $8,173 | | Borrowings outstanding (net of deferred financing costs) | $54,800 | $60,800 | | Total debt, net of cash and cash equivalents | $49,900 | $52,600 | | Underfunded UK pension liability | $900 | $900 | | Cash held by foreign subsidiaries | $2,300 | $3,200 | - Operating activities provided **$2.7 million** in cash for H1 2019, up from **$1.7 million** in H1 2018, primarily due to a decreased net loss[162](index=162&type=chunk) - Investing activities provided **$0.6 million** in H1 2019 (including a **$1.0 million** Denville escrow release), a significant shift from **$52.9 million** used in H1 2018 for DSI acquisition and Denville disposition[163](index=163&type=chunk) - Financing activities used **$6.5 million** in H1 2019 (due to debt repayments including **$4.0 million** excess cash flow and **$1.0 million** Denville escrow payments), contrasting with **$50.7 million** provided in H1 2018 for DSI acquisition debt[164](index=164&type=chunk) [Borrowing Arrangements](index=40&type=section&id=Borrowing%20Arrangements) - The Senior Secured Credit Facilities include a **$64.0 million** term loan and a **$25.0 million** revolving line of credit, maturing in five years, used for the DSI acquisition and working capital[167](index=167&type=chunk) - Term loans are subject to quarterly amortization and annual 'excess cash flow sweep' prepayments; the Company made a **$4.0 million** excess cash flow payment and a **$1.0 million** Denville escrow payment in Q1/Q2 2019[168](index=168&type=chunk) - The facilities are secured by substantially all assets and subject to restrictive covenants; as of June 30, 2019, the Company complied with all covenants and had **$9.5 million** in available borrowing capacity[169](index=169&type=chunk)[171](index=171&type=chunk)[172](index=172&type=chunk) - Interest accrues at a base rate plus **4.75%** or LIBOR plus **6.25%**, with interest rate floors; the weighted effective interest rate on the term loan was **8.85%** as of June 30, 2019[170](index=170&type=chunk)[173](index=173&type=chunk) [Critical Accounting Policies](index=42&type=section&id=Critical%20Accounting%20Policies) - Critical accounting policies remain consistent with those detailed in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2018[176](index=176&type=chunk) [Impact of Foreign Currencies](index=42&type=section&id=Impact%20of%20Foreign%20Currencies) - Foreign currency fluctuations unfavorably impacted revenues by approximately **$0.5 million** for Q2 2019 and **$1.3 million** for H1 2019, while favorably impacting expenses by approximately **$0.3 million** and **$0.8 million** for the respective periods[178](index=178&type=chunk) - The loss from foreign equity translation in comprehensive loss was approximately **$(0.2) million** for Q2 and H1 2019, significantly lower than **$(2.9) million** and **$(1.4) million** in 2018[179](index=179&type=chunk) - Currency exchange rate fluctuations resulted in approximately **$0.1 million** in currency losses for Q2 2019 and **$(0.1) million** for H1 2019, included in net loss[180](index=180&type=chunk) [Recently Issued Accounting Pronouncements](index=42&type=section&id=Recently%20Issued%20Accounting%20Pronouncements) - Refer to Note 2 of the Condensed Consolidated Financial Statements for information on recent accounting pronouncements impacting the business[181](index=181&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=43&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) Discusses the Company's market risk exposure from foreign currency exchange rates and interest rate fluctuations on debt - The Company faces market risk from foreign currency exchange rate changes due to global operations and substantial foreign-denominated revenues and expenses[183](index=183&type=chunk)[184](index=184&type=chunk) - Interest rate risk stems from **$54.8 million** outstanding debt; an interest rate swap hedges **$36.0 million** of this debt, fixing the LIBOR rate at **2.72%**[185](index=185&type=chunk) Estimated Effect of Interest Rate Fluctuations on Interest Expense (in thousands) | Scenario | Interest expense increase | | :--- | :--- | | Interest rates increase by 1% | $246 | | Interest rates increase by 2% | $492 | [Item 4. Controls and Procedures](index=43&type=section&id=Item%204.%20Controls%20and%20Procedures) Confirms effective disclosure controls and procedures, noting ongoing integration of DSI internal controls - Management concluded that disclosure controls and procedures were effective as of June 30, 2019, ensuring reasonable assurance for timely and accurate reporting[188](index=188&type=chunk) - The Company is integrating DSI's business processes and systems, involving ongoing changes to internal controls over financial reporting[189](index=189&type=chunk) [PART II - OTHER INFORMATION](index=44&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Item 1A. Risk Factors](index=44&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors from the 2018 Annual Report, except for additional factual information in this report - No material changes to risk factors from the 2018 Annual Report on Form 10-K have occurred, except for additional factual information in this Quarterly Report[191](index=191&type=chunk) [Item 6. Exhibits](index=44&type=section&id=Item%206.%20Exhibits) Lists exhibits filed with Form 10-Q, including CEO and CFO certifications and XBRL-related documents - Exhibits include CEO and CFO certifications (Sarbanes-Oxley Sections 302 and 906) and various XBRL documents[192](index=192&type=chunk) [SIGNATURES](index=45&type=section&id=SIGNATURES) Contains the required signatures for the Form 10-Q, confirming its due authorization and filing - The report was signed on August 8, 2019, by James Green (CEO) and Michael A. Rossi (CFO), as authorized by the registrant[194](index=194&type=chunk)[195](index=195&type=chunk)